The housing crisis has already caused alarm in Brussels

Eurostat data confirms the scale of the crisis. House prices in the European Union (EU) increased by an average of 47% between 2010 and 2022. Twenty-four member states were affected by the price increase. There has also been an almost constant increase in rents: 18% over the same period. Rents have increased in all countries except Greece. In 2022, the average European household spent around 20% of their income on housing.

Social housing may be one way to solve the problem. But according to Housing Europe – the European federation of the sector – social, public or co-operative housing in the EU makes up only about 11% of the total. In the Nordic countries this sector is strong: the Netherlands (29%), Denmark (21%), Sweden (17%). In southern countries it is very low: Portugal (2%), Spain (1.1%), Italy (3.8%).

What can the EU do?

Within national competences, the EU can assist Member States through initiatives and financial instruments, through the cohesion policy (ERDF or ESF+) or InvestEU, in affordable and social housing projects and homeless assistance.

Member states have also invested RRP funds for energy retrofitting of buildings and the construction of social housing. For all Member States, the recovery and resilience framework includes reforms and investments in social and affordable housing of around €15 billion. Portugal and Spain have the most PRR investments planned for affordable housing.

Priority for MEPs

The structural and European dimension of the housing crisis is leading to greater EU involvement. This has already caused several debates among the 27 countries and in the European Parliament, despite the fact that it is not the responsibility of the EU.

Recently, the President of the European Economic and Social Committee called on the EIB to create a special fund for investment in affordable housing. Major political groups are including the issue as a priority in their manifestos for the European elections.

PPE takes “a transversal dimension to housing policy, framing it in the logic of intergenerational solidarity and paying particular attention to the need to support young people to start a family,” says Lydia Pereira. The PSD MEP defends the “efficient and transparent use of European funds”, the Renovation Wave program for home restoration, support for research projects and new housing solutions, and harnessing the potential of the internal market by promoting cross-border investment.

The European Socialists propose a European Affordable Housing Plan with corresponding investments. MEP Pedro Márquez argues that existing resources must be “part of a European strategy with ‘head, trunk and limbs’, coherent and embedded in a broad policy decision on public investment.” “In the case of housing, we don’t just need discussions about amounts, but binding targets that are reflected in economic and social policies.”